Knowledge City inks SAR 65.3 mln contract with EL-Khereiji

Logo of Knowledge Economic City Co. (KEC) 

Knowledge Economic City Co. (KEC) signed, on June 18, a 14-month contract worth SAR 65.3 million (value-added tax not inclusive) with EL-Khereiji Company for Commerce and Contracting Ltd. for the implementation of the concrete structure of residential buildings as part of the first phase of the Al-Alya project.

In a statement to Tadawul, KEC pointed out that the contractor's dues will be paid in installments according to monthly extracts on the accomplished contract's tasks.

Therefore, the financial impact of cash outflows to pay the contractor's dues will be distributed over a period of 14 months, starting at the end of July 2023.

The Northern Suburb Project (Al-Alya) aims to complement the development of the northern area overlooking the 40-meter-wide Safwan Street. The project area is 269,000 square meters (sqm) divided into plots of different sizes to offer six-story buildings, specially designed to respond to the new urban trend in Madinah, “Humanization of Cities". It also provides green areas and pedestrian paths to create an attractive, quality lifestyle.

The landscaping and pathways area is 72,000 sqm. The length of the green project's main path is 1,100 meters, with a width ranging between 16 and 82 meters.

The land plots are designed in a series of corridors and wide roads, with a park in the middle spanning approximately 60,000 sqm, separating the movement of cars and pedestrians, organizing the traffic in the places designated to encourage walking, as well as allowing full access for people of determination.

As part of the project’s preparations, the company assigned the supervision of infrastructure works to a consultant to ensure the quality of the work.

KEC also assigned an accredited consultant to review the project’s masterplan and ensure that the required technical and engineering standards are followed, as per the Special Economic Cities and Zones Authority’s technical and engineering requirements.

The real estate developer indicated that it would implement part of the construction plan to set forth the project’s development foundations, standards, and urban pattern while outsourcing the remaining part to sub-specialized developers or entering into partnerships with specialized developers and investors for the complete project execution.

This falls within the framework agreement signed with the China Gezhouba company.

There are no related parties to this deal, the statement added.

KEC signed a framework agreement with China Gezhouba Group International Engineering Co. (CGGC) to support the development of KFC’s projects.